Why doesn't the Government support our NZ textiles

Media release

26 February 2009

Why doesn't the Government support our NZ textiles industry? Textile companies ask for “full and fair opportunity”

Government supply contracts make up a substantial proportion of the textiles industry’s manufacturing capability and infrastructure in New Zealand, “they provide the backbone of many a clothing manufacturer’s business”, says Cameron King, Director, Textiles NZ.

Meetings are to take place in March with appropriate Ministers to discuss this very issue and to request Government adjust procurement policies to ensure an on-shore New Zealand made component, in the words of the Prime Minister John Key a “full and fair opportunity”.

To retain the infrastructure and capability of the apparel and textiles industry contracts such as the $2 million contract to supply the army shifting to China will diminish the industry even further; since 2000 the Clothing Manufacturing industry has reduced in employment numbers by 33% (Statistics NZ).

King says this shift highlights major issues confronting the industry:
1. The move threatens more NZ jobs on the eve of a Government job summit
2. The move threatens the livelihood of a significant player in the New Zealand clothing industry
3. The NZ clothing industry also supports other key industries e.g. Wool industry
4. As a trading country we need to adhere to Free Trade Agreements, but we must be able to protect NZ's ability to provide essential government services.
5. This can be achieved by adjusting Government procurement policies for vital/sensitive sectors like Army, Navy, Air force, Police, Hospitals, Fire.
6. This is not without precedent, our government could follow the lead of the United States, which last week required the US Defence Department to buy 100 per cent US-made products deemed essential to military readiness. The Australian government also has similar procurement policies.

“This is an industry full of innovators with ideas to create value added products for local and international niche markets; but they need these procurement contracts to survive and grow.

“We believe the Government can provide some critical support, not through handouts, but by adjusting the procurement policies of government departments and agencies”.

“The Government could stimulate significant growth in the industry if it ensured a percentage of goods and services bought by government departments and agencies were sourced from within New Zealand.

“In return we can offer international markets competitive New Zealand products and services, supported by bedrock industries – such as agriculture – innovative design and a stable and skilled workforce,” Cameron King said.

Textiles NZ works with companies – textiles carpet footwear apparel - to build a sustainable industry that competes successfully in the international marketplace.

ENDS

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